The Company reported diluted earnings per share of $0.36 for the second
quarter of fiscal 2017. Excluding the impact of the ivivva restructuring
that was announced on June 1, 2017, the Company reported adjusted
diluted earnings per share of $0.39.

The summary below provides both GAAP and adjusted non-GAAP financial
measures. In connection with the restructuring of its ivivva operations,
the Company recognized pre-tax costs totaling $5.4 million in the second
quarter of fiscal 2017. The adjusted financial measures exclude the
impact of the ivivva restructuring and the related tax effects, and also
exclude certain discrete tax items which were recognized during the
second quarter of fiscal 2016.

For the second quarter ended July 30, 2017:

Net revenue was $581.1 million, an increase of 13% compared to the
second quarter of fiscal 2016. On a constant dollar basis, net revenue
increased 13%.

Total comparable sales increased 7%, or increased by 7% on a constant
dollar basis.

Direct to consumer net revenue increased 29%, or increased 30% on
a constant dollar basis. During the quarter the Company held an
online warehouse sale. Excluding the impact of this sale, direct
to consumer net revenue increased 15%, or increased 16% on a
constant dollar basis.

Gross profit was $297.4 million, an increase of 17% compared to the
second quarter of fiscal 2016. Adjusted gross profit was $299.7
million, an increase of 18%.

Gross margin was 51.2%, an increase of 180 basis points compared to
the second quarter of fiscal 2016. Adjusted gross margin was 51.6%, an
increase of 220 basis points.

Income from operations was $68.7 million, a decrease of 7% compared to
the second quarter of fiscal 2016. Adjusted income from operations
increased by $0.2 million to $74.1 million.

Operating margin was 11.8%, a decrease of 260 basis points compared to
the second quarter of fiscal 2016. Adjusted operating margin was
12.8%, a decrease of 160 basis points.

Income tax expense was $20.8 million compared to $20.9 million in the
second quarter of fiscal 2016 and the effective tax rate was 29.9%
compared to 28.1%. The adjusted effective tax rate was 29.6% compared
to 30.5% in the second quarter of fiscal 2016.

Diluted earnings per share were $0.36 compared to $0.39 in the second
quarter of fiscal 2016. Adjusted diluted earnings per share were $0.39
compared to $0.38 for the second quarter of fiscal 2016.

The Company repurchased 1.5 million shares of its own common stock at
an average cost of $52.93 per share.

The Company ended the second quarter of fiscal 2017 with $721.2 million
in cash and cash equivalents compared to $535.3 million at the end of
the second quarter of fiscal 2016. Inventories at the end of the second
quarter of fiscal 2017 increased by 14% to $316.4 million compared to
$277.3 million at the end of the second quarter of fiscal 2016. The
Company ended the quarter with 421 stores.

Mr. Potdevin added: "The acceleration that we have seen across the
business in the second quarter enables us to take another positive step
on our path towards achieving $4 billion in revenue by 2020. Finally, I
would also like to express my gratitude for the constant energy and
determination of our teams and ambassadors, who powerfully bring our
brand to life."

Updated Outlook

In connection with the restructuring of the ivivva operations, we expect
to recognize total pre-tax costs of between $50.0 million and $60.0
million in fiscal 2017, inclusive of $23.2 million recognized during the
first two quarters of fiscal 2017. This primarily relates to long-lived
asset impairment and lease termination costs.

For the third quarter of fiscal 2017, we expect net revenue to be in the
range of $605 million to $615 million based on a total comparable sales
increase in the mid-single digits on a constant dollar basis. Diluted
earnings per share are expected to be in the range of $0.33 to $0.35 for
the quarter. Excluding the impact of the ivivva restructuring, we expect
adjusted diluted earnings per share to be in the range of $0.50 to $0.52
for the quarter. This guidance assumes 136.3 million diluted
weighted-average shares outstanding and a 32.2% tax rate, or 30.4%
excluding the tax effect of the ivivva restructuring. The guidance does
not reflect potential future repurchases of the Company's shares.

For the full fiscal 2017, we now expect net revenue to be in the range
of $2.545 billion to $2.595 billion based on a total comparable sales
increase in the low-single digits on a constant dollar basis. Diluted
earnings per share are expected to be in the range of $2.04 to $2.11 for
the full year. Excluding the impact of the ivivva restructuring, we
expect adjusted diluted earnings per share to be in the range of $2.35
to $2.42 for the year. This guidance assumes 136.3 million diluted
weighted-average shares outstanding and a 30.8% tax rate, or 30.3%
excluding the tax effect of the ivivva restructuring. The guidance does
not reflect potential future repurchases of the Company's shares.

The guidance and outlook forward-looking statements made in this press
release are based on management's expectations as of the date of this
press release and the Company undertakes no duty to update or to
continue to provide information with respect to any forward-looking
statements or risk factors, whether as a result of new information or
future events or circumstances or otherwise. Actual results and the
timing of events could differ materially from those anticipated in these
forward-looking statements as a result of risks and uncertainties,
including those stated below.

Conference Call Information

A conference call to discuss second quarter results is scheduled for
today, August 31, 2017, at 4:30 p.m. Eastern time. Those interested in
participating in the call are invited to dial 1-800-319-4610 or
1-604-638-5340, if calling internationally, approximately 10 minutes
prior to the start of the call. A live webcast of the conference call
will be available online at: http://investor.lululemon.com/events.cfm.
A replay will be made available online approximately two hours following
the live call for a period of 30 days.

About lululemon athletica inc.

lululemon athletica inc. (NASDAQ:LULU) is a healthy lifestyle inspired
athletic apparel company for yoga, running, training, and most other
sweaty pursuits, with products that create transformational experiences
for people to live happy, healthy, fun lives. Setting the bar in
technical fabrics and functional designs, lululemon works with yogis and
athletes in local communities for continuous research and product
feedback. For more information, visit www.lululemon.com.

A constant dollar basis assumes the average foreign exchange rates for
the period remained constant with the average foreign exchange rates for
the same period of the prior year. We provide constant dollar changes in
net revenue, total comparable sales, comparable store sales, direct to
consumer net revenue, and direct to consumer net revenue excluding the
online warehouse sale because we use these measures to understand the
underlying growth rate of net revenue excluding the impact of changes in
foreign exchange rates. We believe that disclosing these measures on a
constant dollar basis is useful to investors because it enables them to
better understand the level of growth of our business.

Adjusted gross profit, gross margin, income from operations, operating
margin, effective tax rates, and diluted earnings per share exclude the
costs recognized in connection with the restructuring of our ivivva
operations, its related tax effects, and certain discrete items related
to our transfer pricing arrangements and taxes on repatriation of
foreign earnings. We believe these adjusted financial measures are
useful to investors as the adjustments do not directly relate to our
ongoing business operations and therefore do not contribute to a
meaningful evaluation of the trend in our operating performance.
Furthermore, we do not believe the adjustments are reflective of our
expectations of our future operating performance and believe these
non-GAAP measures are useful to investors because of their comparability
to our historical information.

The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or with greater
prominence to, the financial information prepared and presented in
accordance with GAAP. For more information on these non-GAAP financial
measures, please see the section captioned "Reconciliation of Non-GAAP
Financial Measures" included in the accompanying financial tables, which
includes more detail on the GAAP financial measure that is most directly
comparable to each non-GAAP financial measure, and the related
reconciliations between these financial measures.

Forward-Looking Statements:

This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that involve risks, uncertainties
and assumptions, such as statements regarding our future financial
condition or results of operations and our prospects and strategies for
future growth. In many cases, you can identify forward-looking
statements by terms such as "may," "will," "should," "expects," "plans,"
"anticipates," "outlook," "believes," "intends," "estimates,"
"predicts," "potential" or the negative of these terms or other
comparable terminology. These forward-looking statements also include
our guidance and outlook statements. These statements are based on
management's current expectations but they involve a number of risks and
uncertainties. Actual results and the timing of events could differ
materially from those anticipated in the forward-looking statements as a
result of risks and uncertainties, which include, without limitation:
our ability to maintain the value and reputation of our brand; the
acceptability of our products to our guests; our highly competitive
market and increasing competition; our reliance on and limited control
over third-party suppliers to provide fabrics for and to produce our
products; an economic downturn or economic uncertainty in our key
markets; increasing product costs and decreasing selling prices; our
ability to anticipate consumer preferences and successfully develop and
introduce new, innovative and updated products; our ability to
accurately forecast customer demand for our products; our ability to
safeguard against security breaches with respect to our information
technology systems; any material disruption of our information systems;
our ability to have technology-based systems function effectively and
grow our e-commerce business globally; the fluctuating costs of raw
materials; our ability to expand internationally in light of our limited
operating experience and limited brand recognition in new international
markets; our ability to deliver our products to the market and to meet
customer expectations if we have problems with our distribution system;
imitation by our competitors; higher than anticipated costs and our
ability to realize the benefits associated with the restructuring of our
ivivva business; our ability to protect our intellectual property
rights; changes in tax laws or unanticipated tax liabilities, capital or
financing needs in the United States, or our intentions with respect to
the reinvestment of foreign earnings; our ability to manage our growth
and the increased complexity of our business effectively; our ability to
cancel store leases if an existing or new store is not profitable;
increasing labor costs and other factors associated with the production
of our products in South and South East Asia; our ability to
successfully open new store locations in a timely manner; our ability to
source our merchandise profitably or at all; our ability to comply with
trade and other regulations; the continued service of our senior
management; seasonality; fluctuations in foreign currency exchange
rates; the operations of many of our suppliers are subject to
international and other risks; our exposure to various types of
litigation; actions of activist stockholders; and other risks and
uncertainties set out in filings made from time to time with the United
States Securities and Exchange Commission and available at www.sec.gov,
including, without limitation, our most recent reports on Form 10-K and
Form 10-Q. You are urged to consider these factors carefully in
evaluating the forward-looking statements contained herein and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these cautionary
statements. The forward-looking statements made herein speak only as of
the date of this press release and we undertake no obligation to
publicly update such forward-looking statements to reflect subsequent
events or circumstances, except as may be required by law.

The below changes in net revenue, total comparable sales, comparable
store sales, direct to consumer net revenue, and direct to consumer net
revenue excluding the online warehouse sale show the net change for the
second quarter of fiscal 2017 compared to the second quarter of fiscal
2016.

Net Revenue

TotalComparableSales1,2

ComparableStore Sales2

Direct toConsumer NetRevenue

Direct toConsumer NetRevenueExcluding
theOnlineWarehouseSale

Increase (decrease)

13%

7%

2%

29%

15%

Adjustments due to foreign exchange rate changes

—

—

—

1

1

Increase (decrease) in constant dollars

13%

7%

2%

30%

16%

__________

1

Total comparable sales includes comparable store sales and direct to
consumer sales.

2

Comparable store sales reflects net revenue from company-operated
stores that have been open for at least 12 months, or open for at
least 12 months after being significantly expanded.

Adjusted financial measures

The following table reconciles adjusted financial measures with the most
directly comparable measures calculated in accordance with GAAP:

Quarter Ended July 30, 2017

Quarter Ended July 31, 2016

GAAP Results

Adjustments

AdjustedResults(Non-GAAP)

GAAP Results

Adjustments

AdjustedResults(Non-GAAP)

Gross profit1

$

297,422

$

2,244

$

299,666

$

254,161

$

—

$

254,161

Gross margin1

51.2

%

0.4

%

51.6

%

49.4

%

—

%

49.4

%

Income from operations1,2

68,712

5,430

74,142

73,959

—

73,959

Operating margin1,2

11.8

%

1.0

%

12.8

%

14.4

%

—

%

14.4

%

Income before income tax expense1,2,3

69,524

5,430

74,954

74,537

270

74,807

Income tax expense3,4

20,813

1,390

22,203

20,912

1,926

22,838

Effective tax rate3,4

29.9

%

(0.3

)%

29.6

%

28.1

%

2.4

%

30.5

%

Diluted earnings per share1,2,3,4

$

0.36

$

0.03

$

0.39

$

0.39

$

(0.01

)

$

0.38

__________

1

During the second quarter of fiscal 2017, we recognized costs in
cost of goods sold totaling $2.2 million to reduce the carrying
value of certain ivivva branded inventories to their estimated net
realizable value, to record the expected net loss on certain
committed inventory purchases, and to record accelerated
depreciation.

2

During the second quarter of fiscal 2017, we recognized costs in
operating expenses totaling $3.2 million for severance, lease
terminations and other costs related to the restructuring of our
ivivva operations.

3

The adjustments in the second quarter of fiscal 2016 relate to our
transfer pricing arrangements, the associated repatriation of
foreign earnings, and net interest costs. These adjustments were
recorded in income tax expense and other income (expense), net.

4

The adjustment to income tax expense for the second quarter of
fiscal 2017 represents the tax effect of the ivivva related
restructuring adjustments, calculated based on the expected annual
tax rate of the applicable tax jurisdictions.

Please refer to Notes 6 and 7 to the unaudited interim consolidated
financial statements included in Item 1 of Part I of our Report on Form
10-Q to be filed with the SEC on or about August 31, 2017 for further
explanation as to the nature of these items.

These adjustments relate to the restructuring of our ivivva
operations. Please refer to Note 6 to the unaudited interim
consolidated financial statements included in Item 1 of Part I of
our Report on Form 10-Q to be filed with the SEC on or about August
31, 2017 for further explanation as to the nature of these items.

lululemon athletica inc.

Store Count and Square Footage1

Square Footage Expressed in Thousands

Number ofStores Open attheBeginning
ofthe Quarter

Number ofStores OpenedDuring theQuarter

Number ofStores ClosedDuring theQuarter3

Number ofStores Openat the End ofthe
Quarter

3rd Quarter 2016

379

12

2

389

4th Quarter 2016

389

17

—

406

1st Quarter 2017

406

5

—

411

2nd Quarter 2017

411

11

1

421

Total GrossSquare Feet atthe Beginningof
the Quarter

Gross SquareFeet AddedDuring theQuarter2

Gross SquareFeet LostDuring theQuarter2,
3

Total GrossSquare Feet atthe End of
theQuarter

3rd Quarter 2016

1,117

32

5

1,144

4th Quarter 2016

1,144

47

1

1,190

1st Quarter 2017

1,190

14

—

1,204

2nd Quarter 2017

1,204

37

3

1,238

__________

1

Store count and square footage summary includes company-operated
stores which are branded lululemon or ivivva. Excludes retail
locations operated by third parties under license and supply
arrangements.

2

Gross square feet added/lost during the quarter includes net square
foot additions for company-operated stores which have been renovated
or relocated in the quarter.

3

Subsequent to quarter end, on August 20, 2017, as part of the
restructuring of its ivivva operations, the Company closed 47 of the
55 ivivva branded company-operated stores. Of the eight remaining
ivivva branded stores, seven are expected to remain in operation and
one is expected to be converted to a lululemon branded store.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding lululemon athletica inc (PR)'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.